Petrol price reduced by Re0.25 per litre for December

ISLAMABAD: The government on Saturday announced decrease in the prices of petroleum products for the month of December.

The decision was made on recommendations by the Oil & Gas Regulatory Authority (Ogra) which proposed the decrease to pass on the impact of lower international market rates.

According to a notification issued by the finance ministry, petrol will now cost Rs113.99 per litre which is Rs0.25 cheaper than last month’s rate.

Light diesel oil and high speed diesel will see a significant reduction in prices this month, costing Rs2.90 and Rs2.40 cheaper.

According to the new rate, light diesel oil will cost Rs82.43 and high speed diesel will cost Rs125.01. Kerosene has become Rs0.83 cheaper, costing Rs96.35 this month.

Last month’s hike in prices were attributed to the government seeking to generate an additional revenue of about Rs700 million.

The government had begun increasing petroleum levy rates over the past few months to offset a revenue shortfall of over Rs113 billion faced by the Federal Board of Revenue. The levy remains with the federal government unlike GST that is divided among provinces.

Petrol and HSD generate much of the revenue for the government due to a massive and growing consumption in the country.

About 800,000 tonnes of HSD are sold every month against a monthly consumption of around 700,000 tonnes of petrol. The sales of kerosene oil and LDO are generally less than 10,000 tonnes per month.